TURKEY’S HUGE GOLD IMPORTS ARE LEADING TO A GROWTH IN THE NATION’S CURRENT ACCOUNT TRADE DEFICITS
GOLD MARKET OF TURKEY – OVERVIEW
At the beginning of the era, the gold
market of Turkey was not liberalized and only the official authorities, like
the Central bank of the nation were allowed to import gold into the country.
due to the liberalization of the Turkish market in 1993, entities other than
the central bank were also allowed to perform the gold trade. The process of
liberalization started in 1989 and ended in 1993. Since then, various
amendments and advancements are made to the gold trade of the nation.
A three-way merger between the
Istanbul Gold Exchange, Istanbul Stock Exchange, and Turkish Futures and
options exchange took place in April 2013. Today, Turkey is in the 4th
position in terms of gold consumption as per Turkey Trade Data and
contributes to the global consumer demand for gold by 6%. As per some other
crucial reports of the World Gold Council, the households of Turkey hold
approximately 3,500 tons of gold.
Major gold-producing refineries of
Turkey are:
·
Istanbul gold refinery
·
Nadir metal refinery
·
Atasay Kuyumculuk Sanayi Ve Ticaret
CURRENTLY, TURKEY IS FOCUSING ON ITS
GOLD IMPORTS
As Turkey is focusing on importing
more and more gold, the current account trade deficit is rising for the nation.
Moreover, to process and design a gold item, the energy used is also getting
expensive which is further causing the expansion of the trade deficit. As of
2022, the deficit amount in Turkey’s current account was USD 48.8 billion.
Moreover, in just December 2022, this gap widened by USD 6 billion.
In the year 2022, total gold imports
as listed in Turkey Import
Data were USD 20.5 billion and the transactions for the same were done
through the current account balance. The speech was delivered by the governor
of the State bank, Sahap Kavioglu which stated that due these massive imports
of gold to Turkey have brought Turkey to the trade deficit stage.
Based on Turkey Import Data
for the year 2022, the imports of gold into the country went up by a massive
543%, touching USD 3 billion in September 2022. Not only the trade balance was
affected, but other domains such as the gold reserves of Turkey also went up
from 148 tons to 542 tons.
The major countries from which Turkey
Imported gold the most in the year 2022 were Iraq, the United Arab Emirates,
Switzerland, Libya, and the United Kingdom. On the other hand, as per Turkey
Export Data for the same year, the major countries to whom Turkey supplied
gold were the United Kingdom, the United States, the UAE, and Malaysia. The
president of Turkey, Recep Tayyip Erdogan has also paid attention to this news
of rising gold imports in the country. He said that Turkey is getting ready to
produce gold domestically so that its dependence on imports gets reduced to a
certain extent.
Interestingly, not only the central bank
increased its gold imports, but other local traders and sellers also boosted
their gold storage and imported in abundance.
LAST VERDICT
As we reach the end of this report,
we hope that you got an idea that how the imports of gold and the rising trade
deficit are directly related. The government of Turkey should pay extra
attention to this area as the rising imports of gold is very detrimental to the
country in a long run. More and more awareness should be spread amongst the
local traders that importing gold in huge numbers is affecting the nation in a
negative manner. The statement of the country’s prime minister brings relief to
some extent and it is expected that Turkey Trade Data will show changes
in the coming years.
POST SCRIPT
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If you want further analysis and the best advice about the Import Export Data or Global Trade Data of any country, then get in touch with TradeImeX® Info Solution Pvt Ltd. We are one of the best companies available online that provide 100% accurate and reliable trade data from more than 70 countries including Vietnam Export Data and Turkey Import Data at affordable prices. We also deliver customized data reports to our customers which are highly customized as per each customer’s needs and wants. Due to this reason, TradeImeX is considered the best Import Export Data Provider in the industry.
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